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Lululemon Athletica reports 88 percent jump in Q1 sales

By Prachi Singh

4 Jun 2021

For the first quarter of 2021, net revenue at Lululemon Athletica increased 88 percent to 1.2 billion dollars, while on a constant dollar basis, net revenue increased 83 percent.

Commenting on the first quarter trading, Calvin McDonald, company’s chief executive officer, stated: “Our first quarter results reflected strength across all drivers of growth, fuelled by the continued expansion in our e-commerce business and a rebound in brick and mortar stores.”

Review of Lululemon’s firs quarter performance

Lululemon said that company-operated stores net revenue increased 106 percent to 536.6 million dollars and direct to consumer net revenue increased 55 percent to 545.1 million dollars. On a constant dollar basis, direct to consumer net revenue increased 50 percent. The company added that net revenue increased 82 percent in North America, and increased 125 percent internationally.

Gross profit for the quarter increased 109 percent to 700.3 million dollars and gross margin increased 580 basis points to 57.1 percent.

Diluted earnings per share were 1.11 dollars compared to 22 cents in the first quarter of 2020, while adjusted diluted earnings per share were 1.16 dollars compared to 23 cents in the first quarter of 2020.

The company opened two net new company-operated stores during the quarter, ending with 523 stores.

Lululemon’s results against Q1 2019

Compared to the first quarter of 2019, the company’s net revenue increased by 444.2 million dollars or 57 percent, representing a two-year compound annual growth rate of 25 percent.

Gross margin increased 320 basis points, while operating margin decreased 70 basis points and adjusted operating margin decreased 10 basis points.

Diluted earnings per share were 1.11 dollars compared to 74 cents in the first quarter of 2019. Adjusted diluted earnings per share were 1.16 dollars in the first quarter of 2021.

Lululemon announces Q2 and FY21 outlook

For the second quarter of 2021, the company expects net revenue to be in the range of 1.300 billion dollars to 1.330 billion dollars, diluted earnings per share are expected to be in the range of 1.05 dollars to 1.10 dollars for the quarter and adjusted diluted earnings per share are expected to be in the range of 1.10 dollars to 1.15 dollars.

For 2021, Lululemon expects net revenue to be in the range of 5.825 billion dollars to 5.905 billion dollars and diluted earnings per share are expected to be in the range of 6.52 dollars to 6.65 dollars for the year and adjusted diluted earnings per share are expected to be in the range of 6.73 dollars to 6.86 dollars.

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